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'Pharma bro' faces Congress

Ex-drug executive Martin Shkreli who sparked outrage last year among patients, medical societies and much of the public, appears before Congress.

"I would love to talk to Congress. I would berate them. I would insult them," said the former chief executive of Turning Pharmaceuticals, who became America's most hated man in September when it was revealed his company bought a potentially life-saving drug and jacked up the price of it by some 4000 per cent.

Shkreli is now under investigation for securities fraud unrelated to the price-gouging, but that hasn't stopped the 32-year-old from tweeting, live-streaming from his New York City apartment, and baiting Congress in media interviews. The legislators were no doubt just as eager to school him and be seen telling him what's what in a public forum.

It was classic Shkreli as the world knows him - bold, unapologetic, brash, arrogant.

And then as Shkreli sat down along with four other witnesses on Thursday in front of the House oversight committee to testify on prescription drug price-gouging, he suddenly, and uncharacteristically, shut his mouth.

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Shkreli, with a smirk that seems to be permanently etched onto his face, pleaded the Fifth Amendment, invoking his constitutional right to stay silent and avoid self-incrimination.

The legislators were prepared for this; Shkreli had earlier in the week said he planned to follow his lawyers' advice and plead the Fifth. "They just want it to be a circus," he told CNBC.

Committee Chairman Jason Chaffetz and his Republican buddy and former prosecutor Representative Trey Gowdy had a good-cop, bad-cop routine ready to go. It was a made-for-TV courtroom interrogation, but Shkreli kept his mouth shut.

Then they handed it over to Elijah Cummings, the top Democrat on the committee, who tried to shame Shkreli into talking. He called Turing a "Ponzi scheme" in his opening remarks, saying the research and development that Turing has claimed it is doing to justify its high prices is simply research on which new drugs it could acquire and raise the prices.

After the other witnesses, including two pharmaceutical officials and one from Shkreli's former company, testified about their company programs to help patients afford expensive drugs, Chaffetz turned to Shkreli and noted that Shkreli hadn't submitted any written testimony.

Does he wish to give any now? Chaffetz asked.

Shkreli: On the advice of counsel, I will not be giving an opening statement.

Chaffetz then dived right into an ethical argument.

Chaffetz: What do you say to that pregnant woman ... who might have AIDS and no income, and she needs Darapim in order to survive? What do you say to her when she has to make those choices?

Chaffetz then tried a different tack, setting up Shkreli with a chance to defend himself. He asked if Shkreli meant what he said when he told Fox News that his former company takes all of its profit and funnels it into research.

Shkreli: On the advice of counsel, I invoke my Fifth Amendment privilege against self-incrimination and respectfully decline to answer your question.

Next up it was Gowdy's turn, who showed off his skills as former prosecutor and got Shkreli to say two additional words.

Gowdy: It's pronounced 'Shu-kreli' right?

Gowdy tried a legal tack: Making the argument that the Fifth Amendment might only apply to cases where you actually risk incriminating yourself. After all, Shkreli isn't under indictment for rising drug prices, Gowdy pointed out.

Shkreli didn't budge, and Gowdy gave up: "Mr Chairman, I'm vexed. He's been willing to answer at least one question this morning that won't subject him to incrimination.... I listened to his interview, and he didn't have to be prodded to do that, and he didn't have to be prodded to tweet, and he didn't have to be prodded to show his life on that little webcam he got ... And what about that Wu-Tang Clan album you bought for $US2 million, Gowdy asked him?

Shkreli said nothing.

Gowdy: I am stunned that a conversation about an album he purchased could possibly subject him to incrimination.

At this point, Shkreli's lawyer - he recently hired a new one - stood up from the seats behind the witness table and asked to say something.

Chaffetz immediately shut him down.

Chaffetz: No. You will not be recognised. You will be seated.

Then Chaffetz handed things over to Cummings, who said he would respect Shkreli's constitutional right.

Cummings: Honestly, I didn't even know if you would show up today, so it's nice to see you.

But even if he couldn't get Shkreli to open up, Cummings couldn't resist trying to lecture him.

Cummings: But since I have you in front of me after trying to get you in front of this committee for so long, let me say this: I want to ask you -- no, I want to plead with you -- to use any remaining influence you have over your former company to press them to lower the prices of these drugs.

Shkreli turned his head to the right and stared at a spot on the floor.

Cummings: You can look away if you like.

Cummings: But I wish you could see the faces of these people ??? who cannot get the drugs they need. ... You are in a unique position, really you are. You have a spotlight and you have a platform you could use that attention to come clean, to right your wrongs and become the most effective patient advocate in the country, and one that would make a big difference in so many people's lives.

Shkreli's smirk had returned.

Cummings: I know you're smiling. But I'm very serious. The way I see it, you could go down in history as the poster boy for greedy drug company executives or you could change the system. Yeah, you.

Shkreli's smirk had turned into a full-on grin.

Cummings: Are you listening?

Now Shkreli had a sombre face. He had picked up a pencil and was bouncing it off a pad of paper in front of him.

Cummings: There's so many people who could use your help. May God bless you.

And with that, Shkreli was dismissed, and the hearing went on.

Politico's John Bresnahan said it all in a Tweet:

I've been covering Capitol Hill for 20 years. Never seen a witness act like Martin Shkreli. I'm stunned, tbh